92. Tax Returns of Principals for the Past Three Years

The tax returns of the principals for the last three years will give an accurate indication of their taxable income and/or losses and a rather detailed explanation of any expenses inccured during that tax period. Most often, the 10-40 statement will provide a clear representation of this information.

These documents prove the financial security of the principals of the company and gives a somewhat objective indication of their riskiness as an investment to possible investors.